Malpractice in procuring medicines under central government health scheme: CAG News WAALI report

Malpractice in procurement of medicines under central government health scheme: CAG report

A report by the Chief Audit Officer (CAG) revealed irregularities in the procurement and distribution of medicines under the Central Government Health Scheme (CGHS).

In this regard, the press release said:

The Union Health Ministry has not ensured that the list of recommended drugs for CGHS and government hospitals is revised from time to time.

After June 2015, the list of recommended drugs was only revised in February this year. This indicates that new prescriptions from doctors are not counted towards the purchase of medicines under the CGHS.

A list of prescribed drugs can ensure that drugs are prescribed and available for a large number of illnesses. But the pharmacy organization (MSO) has not finalized the purchase price of the drugs on this list.

Of 2,030 drugs on the list, the MSO finalized price contracts for 220 to 641 drugs from 2016-17 to 2020-21. For this reason, drugs on the Prescription Drug List could not be purchased under the CGHS. Government dispensaries do not distribute drugs in time for the central government health plan.

Due to gaps in drug supply and distribution, there was a continuous shortage of drugs in health centers. Of the 1,169 drugs required per year under the central government health scheme, only 6 to 290 drugs were available at health centers. Due to the non-availability of generic drugs, health centers had to purchase drugs at high prices from licensed local drug dealers.

At the same time, licensed local drug dealers were not supplying the drugs requested by health centers. Instead, they distributed drugs made by different companies in violation of contract terms. It took place all over the country.

In addition to this, licensed local drug dealers distributed drugs late, in small quantities or in very large quantities. It is reported that they also distributed short-term or expired drugs to health centers.

Irregularity of Rs 95.62 Crore: The CAG report on the Postal Department states:

Due to irregularities in post offices, from November 2002 to September last year, public money to the tune of Rs 95.62 crore was embezzled in over 14 postal circles. Of which Rs. 40.85 lakhs as interest/penalties was paid and Rs. 14.39 crores was recovered.

Post offices can carry out rigorous checks and internal audits at different levels. He was informed that such measures can be taken to protect public money in post offices and to protect the trust that people have placed in these offices.

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